Project Overview
Although the number of Venezuelan migrants returning to their country increased in 2023, Venezuela’s political and economic crises continue to push Venezuelans to leave their country in numbers that surpass those of returnees. With presidential elections happening in late July 2024, the migration flows from Venezuela may change depending on the election results. Indeed, a nationwide poll conducted in April 2024 showed that roughly a fourth of Venezuelans currently in the country are thinking about migrating, of whom 47% said an electoral win by the opposition would make them stay [1]. As of May 2024, the Regional Interagency Coordination Platform for Refugees and Migrants of Venezuela reported 7.77 million Venezuelan refugees and migrants globally, and 6.59 million of these individuals have migrated from Venezuela to Latin American countries [2].
With an estimated 1.54 million Venezuelan refugees and migrants in Peru and 444,800 in Ecuador as of May 2024 [3], both countries continue to face several challenges related to the Venezuelan migration crisis, worsened by political instability, inequality, social upheaval, and a surge in violence and crime, limiting migrants and refugees’ access to decent work and livelihoods and exposing them to heightened GBV and xenophobia.
Unemployment and informality continue to greatly impact host country nationals and Venezuelan migrants and refugees. In Peru, the unemployment rate reached 6.4% between January and March 2024. And according to the Encuesta Permanente de Empleo Nacional, of those employed between April 2023 and March 2024, 71.2% had informal job [4]. In Ecuador, during the quarter from January to March 2024, unemployment reached 4.1%, and of those employed, 54.2% were employed in the informal sector [5]. I Informal economies are typically characterized by a high incidence of poverty, lack of social protections, and low wages, highlighting the importance and need for supporting opportunities for engagement in the formal economy.
Understanding the need for rapid assistance to Peru and Ecuador, WOCCU, with funding from the United States Agency for International Development (USAID), is implementing t
he Economic Inclusion Project (EIP), an ambitious and innovative approach aimed at providing economic opportunities and financial services to assist both Venezuelan migrants and refuges and their host communities
in the target cities of Lima in Peru and Quito and Guayaquil in Ecuador. Given EIP's success, in May 2023, USAID awarded an extension through May 2026. With the project extension, EIP will expand implementation to include Trujillo, Arequipa, Ica, Piura, and Callao in Peru, and Manta, Ibarra, and Cuenca in Ecuador. These geographies were selected due to the large population of Venezuelan refugees and migrants.During phase one of EIP, initiated in June 2020 until March 2023,
109,679 individuals obtained formal financial services,
15,120 individuals received financial education and literacy training,
12,278 Venezuelan migrants and locals accessed entrepreneurship or employment opportunities, and
2,037 Venezuelans received support for revalidating their diplomas, or professional or technical degree certifications.Some key target goals for phase two include providing an additional:
- 140,000 Venezuelans and locals with access to formal financial services.
- 17,000 individuals with entrepreneurship and employment opportunities.
- 6,000 Venezuelans with support to revalidate their professional or technical degrees and certifications.
To reach its goal, EIP has adapted and implemented entrepreneurship (Objective 1) and employment (Objective 2) training programs targeted at migrants and refugees considered above the level of immediate vulnerability. WOCCU also works with its trusted network of credit union, NGO, and private sector partners to extend new or adapted financial products and services to vulnerable Venezuelans and local populations (Objective 3). In response to the significant impact that gender disparities have on economic independence and stability, EIP has integrated gender inclusion into the three objectives outlined above. Additionally, EIP delivers critical GBV prevention and accompaniment. In addition to these objectives and cross-cutting theme, phase two of EIP will also prioritize:
- Programs and strategies that allow for the inclusion of youth and LGBTQI+ communities.
- Capacity-building for credit unions and other local organizations.
- Climate change adaptation and mitigation through the promotion of green entrepreneurial businesses, jobs and financial products.
Through this objective, the Economic Inclusion Project is supporting both aspiring and experienced entrepreneurs with advisory services to establish a business in the host country, technical support with business planning and execution, and linkages to new markets. By the end of the project's phase two, we expect that at least 17,000 individuals will be supported with entrepreneurship or employment training through the following approach:
Figure 1: WOCCU's Entrepreneurship Methodology
Results To Date*
- 10,144 individuals reached through entrepreneurship training programs
- 38% Venezuelans in Peru
- 30% Venezuelans in Ecuador
- 1,484 business plans selected for seed capital
- 9,789 individuals reached through webinars on registration, formalization, and best practices
*Data as of June 30, 2024Jaqueline Mora
“My business has grown after the Campamento Emprendedor program, and now I not only support another person’s employment, but I also apply financial knowledge with my daughters and family."
After successfully completing EIP’s Campamento Emprendedor program, Jaqueline Mora, who lives in Quito, Ecuador, boosted her business “Eros Creaciones” to the point where she can maximize production and was able to hire an employee. Jaqueline received seed capital and the opportunity to join the entrepreneurial development incubation program to continue strengthening her business. She now feels integrated into the country thanks to these opportunities to grow her business through EIP’s support.
Through this objective, the Economic Inclusion Project is working with private sector employers to expand their recruitment efforts to include highly qualified Venezuelan migrants as well as Peruvians and Ecuadorians seeking new or better employment. The Project will also work to train project participants to provide them with the tools they need to meet the demand of the Peruvian and Ecuadorian job markets. By May 2026, through the following approach, we expect that 6,750 individuals will access new or better employment opportunities leading to more stable incomes.
Figure 2: WOCCU's Employability Methodology
Results to Date*
- 5,944 individuals reached through employment training programs
- 72% Venezuelans in Peru
- 9% Venezuelans in Ecuador
- 3,519 individuals supported through the certificate or degree revalidation process
- Primary sectors are humanities and education (33.6%), health (22%), and administrative (22.7%)
- 740 businesses and 16,190 individuals reached through employment events including job fairs and employment clubs.
*Data as of June 30, 2024
Renato Córdova
“What I liked the most about the workshop was the educational, useful, and inspiring way the
tips were presented in order to create a good resume and thus get a job.”
Renato Córdova is a 23-year-old Venezuelan who arrived in Quito, Ecuador, in 2016. He participated in the EIP workshop titled “Life Plan for Youth with a Productive Focus,” created for Venezuelan youth between the ages of 18 and 29. Renato and other participants learned about EIP’s entrepreneurship and employment tools and strategies during the workshop and were later connected to job fairs organized by EIP in coordination with project partners and allies.
Through this objective, the Economic Inclusion Project will work to support credit unions and other financial institutions to develop new or adapt existing products and services that meet the needs of Venezuelan migrants and local nationals.
Designed to be responsive to the findings of the financial inclusion study, EIP’s financial inclusion methodology is founded on the premise of enabling access and use of financial products and services, particularly those that respond to EIP’s target population needs. To implement this methodology, EIP works closely with a strong network of financial institutions, working side-by-side with each institution to reduce barriers to access and inclusion, develop new and responsive tools, improve processes, revise policies and procedures, implement new or adapted methodologies, and strengthen staff skills and knowledge. Through EIP’s financial education training, EIP participants learn the fundamentals of personal and business financial management before being connected to the financial services sector. This approach ensures that when participants and institutions are linked, both are well prepared and educated on the other’s needs and requirements. Through the following approach, we expect that over 140,000 individuals will have access to financial services by the end of the project's phase two.
Figure 3: WOCCU's Financial Inclusion Methodology
Results to Date*
- 165,354 individuals connected with financial services
- 16,207 loans issued, amounting to $18,165,844.
- 22,354 individuals trained in financial education, 66% of whom are women and 62% are Venezuelans
*Data as of June 30, 2024
Clara Garcia
“I had never been able to open an account because no one accepted my expired passport or my Peruvian
identification document. Now, my account will allow me to manage my money and save.”
Clara García is a Peruvian entrepreneur who has been living in Ecuador for five years. Due to a lack of accepted documentation, she had not been able to open an account until the new basic account regulatory change coordinated by EIP, USAID, the Financial Policy and Regulation Board (JPRF), and the Superintendency of Popular and Solidarity Economy (SEPS). The new regulation now allows migrants and refugees to open a basic account using an identification document from their country of origin.
EIP’s GBV interventions prioritize supporting survivors of gender-based violence to achieve economic autonomy. EIP’s approach focuses on a core principle – that with psychological/social support and access to income/financial autonomy, people who experienced GBV will transition to survivors with access to sustainable and quality livelihoods, income, and financial independence, contributing to their ability to leave the circle of violence.
EIP has established partnerships with institutions and organizations providing continual psychosocial support for GBV survivors and with partners implementing entrepreneurship and employment trainings that emphasize empowering survivors to develop personal action plans that identify their strengths, professional and personal interests, and opportunities as well as practical steps to reach their goals. Additionally, EIP's approach includes personal financial education at its core so that individuals are empowered to take meaningful steps to exit the cycle of violence and reach economic autonomy as survivors.
Figure 4: WOCCU's GBV Response and Prevention Methodology
Results to Date*
- 909 individuals received GBV services
- 356 staff from 17 partners trained on GBV prevention
- 122 participants in GBV programming received seed capital to begin their businesses
.
*Data as of June 30, 2024
Maridiliana Morillo
“Children are never an obstacle to progress, and if I have the opportunity to be here, I know many women can also do it. They will be able to start businesses and grow as individuals, breaking down taboos about what we can achieve.”
Maridiliana Morillo is a Venezuelan single mother who moved with her three children to Lima in 2019. She participated in UVIP’s Crecer en Perú, achieving emotional stability and acquiring tools that support her to start a business and gain economic autonomy and stability.
Supporting Capacity Building/Localization
With the project extension, EIP has integrated capacity building/localization as a main EIP component, embracing USAID’s commitment to localization to strengthen local organizations by transferring methodologies and improving capacity.
The institutional strengthening activities aim to have a comprehensive impact on local organizations, improving organizational performance in priority areas by providing tools and strategies to improve quality of services, strengthen business models, and encourage new initiatives that will allow the organizations to expand their reach. EIP will work with a total of five local organizations, three in Peru and two in Ecuador, to provide capacity building support to encourage improved organizational performance.
Gender InclusionAcross all project components, EIP works to address the barriers to economic inclusion and participation that many women and gender diverse individuals face in Peru and Ecuador. As EIP seeks to reduce gender gaps and promote gender equality throughout program implementation, EIP incorporates targeted programming and activities to support women and gender diverse participants and encourage their economic integration.
Results to Date*
- 75% of entrepreneurship program participants, 70% of employment programs participants, and 54% of individuals financially included are women
Youth Economic InclusionThroughout project components, EIP incorporates a cross-cutting focus on the economic inclusion of youth as a target population.
The preliminary results of EIP’s "Study on the Socioeconomic Integration of Venezuelan Migrants" presented in FY24 Q3 show the project’s impact on the economic inclusion of youth in Peru and Ecuador, highlighting that the project’s beneficiaries between the ages of 18 and 29 years old are the age group with the highest monthly income: USD $432 in Peru and USD $569 in Ecuador. Likewise, when considering the integration index, specifically the economic dimension, EIP’s beneficiaries from this age group perceived the highest economic integration (0.46), surpassing other age groups for both EIP and non-EIP participants. This is an important finding that allows EIP’s technical team to identify the impact of the project’s strategies to achieve migrant integration, especially the integration of youth migrant populations.
Results to Date*
- 23% of entrepreneurship program participants, 22% of employment programs participants, and 30% of individuals financially included are youth (ages 18-29).
*Data as of June 30, 2024
Youth Employment Convention
EIP and the Ministry of Economic and Social Inclusion in Ecuador organized a job fair featuring
companies with job openings in the service industry. The event was catered to youth between the ages of 18 and 29 and was attended by the President of Ecuador, Daniel Noboa. At this event, EIP engaged youth attendees to provide employment training, shared information about the degree revalidation process for Venezuelan professionals, and gave two presentations on digital tools and how to enhance a resume.
Objective 1: Assisting New and Existing Entrepreneurs
Objective 2: Facilitating Access to Employment
Objective 3: Increasing Access to Financial Services
